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DEPOSITS When a Company is acquiring funds from the Members of the Company or from Public as applicable in form of loan or any other form but specifically excluding certain type of transactions is termed as Deposits. It is a technique of securing finance in which a company applies its as per need and requirements. In this article, we will discuss about the Deposits in detail. What is Deposit? “start-up company” means a private company incorporated under the Companies Act, 2013 or Companies Act, 1956 and recognised as such in accordance with notification number G.S.R. 127 (E), dated the 19 th February, 2019 issued by the Department for Promotion of Industry and Internal Trade;  As per notification issued by DPIIT: An entity shall be considered as a Startup: i.       Upto a period of 10 years from the date of incorporation/ registration, if it is incorporated as a private limited company or registered as a partnership firm or a limited liability partnership in India. ii.      Turnover
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Related Party Transactions

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Every Company on day to day activities enters into transactions with various parties, these parties include parties related with Company as well. Companies and Related Party are required to comply with provisions of Companies Act, 2013, Listing Obligations and Disclosure Requirements, 2015 and Accounting Standards to safeguard the interest and Transparency among stakeholders. In this Article we will discuss following applicable provisions in detail wr.t. related party transactions ·      Companies Act, 2013 ·      Companies (Specifications of Definitions Details) Rules, 2014 ·      Companies (Meeting of Board and its Power) Rules, 2014 (MBP Rules, 2015) ·      Listing Obligations and Disclosure Requirements, 2015 (Listing Regulations, 2015) ·      Accounting Standards- 18 Related Party Disclosures (AS-18) Definitions Definition of Relative Definition of Related Party Definition of Related Party Transaction Procedure of complying with Related Party Transactions Approval
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Reduction of Share Capital under Section 66 of Companies Act, 2013

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Section 66 of Companies Act, 2013 provides for Reduction of Share capital read with National Company Law Tribunal (Procedure of Reduction of Share Capital) Rules, 2016. Let us understand the provisions in detail. Methods of Reduction of Capital [Sec 66(1)] Procedure of Reduction of Capital as per Section 66 and NCLT (Procedure of Reduction of Share Capital) Rules, 2016 Content of Application filed to Tribunal [Rule 2(2)] Inspection of List of Creditors [Rule 2(3)]: ·      Copies of the list of creditors shall be kept at the registered office of the company. ·      Any person desirous of inspecting the same may, at any time during the ordinary hours of business, inspect and take extracts from the same on payment of the sum of Rs. 50/- for inspection and for taking extracts on payment of the sum Rs. 10/- per page to the company. Important Points ·      Notice to Creditors by Company shall state the amount of the proposed reduction of share capital and the amount or
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Private Placement procedure under Companies Act, 2013

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As per Companies Act, 2013, Company can issue securities in various ways to its investors. One of the options is Private Placement. In this article we would discuss about procedure of private placement in detail. Section 42 refers to offer or invitation for subscription of securities on Private Placement. Company may make Private Placement of Securities, subject to provisions of section 42 [Sec 42(1)]. Meaning of Securities: Meaning of Private Placement and its Limit Meaning of Qualified Institutional Buyer: The qualified institutional buyer as defined in the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended from time to time, made under the SEBI Act, 1992. As per Reg 2(ss) of SEBI (ICDR) Regulations, 2018, “qualified institutional buyer” means: (i)         a mutual fund, venture capital fund, alternative investment fund and foreign venture capital investor registered with the Board; (ii)       foreign port
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